Ethanol Organizations Applaud Japan Policy Shift To Allow Use Of U.S. Ethanol

Dan Energy, Industry News Release

Ethanol and trade groups are applauding the news that Japan will allow imports of a gasoline additive made from U.S. corn-based ethanol. The change comes as part of Japan’s update of its existing sustainability policy, approved in 2010, in which only sugarcane-based ethanol was eligible for import japanand which only allowed sugarcane-based ethanol for the production of ETBE, an oxygenate for gasoline.

U.S. Grains Council President and CEO Tom Sleight says the decision shows “continued improvements in carbon intensity reductions are critical to gain and maintain market access for U.S. ethanol.” The new policy calls for an increase in the carbon intensity reduction requirements of ethanol used as a feedstock to make ETBE meet a 55 percent reduction, up from 50 percent, and recognizes corn-based, U.S.-produced ethanol’s ability to meet that goal, even with the higher greenhouse gas reduction standard.

Japan will now allow U.S. ethanol to meet up to 44 percent of a total estimated demand of 217 million gallons of ethanol used to make ETBE, or potentially 95.5 million gallons of U.S.-produced ethanol annually

From the National Association of Farm Broadcasting News Service.